After Hurricane Hattie, with winds of up to 300 kilometres per hour (190 mph), destroyed approximately 75% of the houses and business places in low-lying and coastal Belize City, the government proposed to encourage and promote the building of a new capital city. This new capital would be on better terrain, would entail no costly reclamation of land, and would provide for an industrial area. In 1962, a committee chose the site now known as Belmopan, 82 kilometres (51 mi) west of the old capital of Belize City.
Since Belize was a British colony (known as British Honduras) in 1964, Premier George Cadle Price led a delegation to London to seek funds to finance the new capital. Although they were not ready to commit to funding such a large project, the British government showed interest due to the logic of locating the capital on high ground safe from tidal waves. To encourage financial commitment from the British government, Premier Price and the PUP government invited Anthony Greenwood, Secretary of State for the Commonwealth and Colonies, to visit Belize. One of the highlights of this visit was the unveiling of a monument at mile 49 on the Western Highway. The monument records that Lord Greenwood dedicated the site for the new capital on 9 October 1965. Thus, in a fashion, there was a commitment.
The name chosen for the new capital, Belmopan, is derived from the union of two words: "Belize", the name of the longest river in the country, and "Mopan," one of the rivers in this area, which empties into the Belize River. The initial estimated cost for building this new city was 40 million Belize dollars (US$20 million). Only 20 million Belize dollars (US$10 million) were available, but the momentum was not to be lost.
In 1967, work began; the first phase of the new city was completed in 1970 at a cost of 24 million Belize dollars (US$12 million). From 1970 to 2000 the administration of Belmopan was managed by the Reconstruction and Development
